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Steelworkers Disquieted as Nippon–USS Alliance Shrouded in Ambiguity
Saturday, May 31, 2025
Synopsis: - United Steelworkers president David McCall expressed concern over a proposed partnership between U.S. Steel and Japan’s Nippon Steel, citing lack of consultation, historical trade law violations, and vague government assurances such as the "golden share". The union demands concrete, enforceable protections for workers and U.S. steel communities.
Steelworkers Shut Out of Strategic Talks
The United Steelworkers, North America’s largest industrial union, is voicing deep unease over a proposed “strategic partnership” between U.S. Steel and Japanese conglomerate Nippon Steel. In a strongly worded statement issued Friday, USW International President David McCall revealed that the union has been entirely excluded from negotiations.“We have not participated in the discussions involving U.S. Steel, Nippon Steel, and the Trump administration, nor were we consulted,” said McCall. “So we cannot speculate about the meaning of the ‘planned partnership.’”
The revelation that organized labor, a stakeholder in both economic and political terms, was left out of the loop has galvanized worker representatives and stirred apprehension across steel-producing states.
The “Golden Share” Gambit Sparks Skepticism
The controversy intensified following media reports that the U.S. government may receive a “golden share” as part of the deal, a theoretical stake with veto power over critical decisions. However, McCall cast doubt over this claim, calling it speculative and non-binding.“Press releases and political speeches are easy. Binding commitments are hard,” he asserted. “The devil is always in the details, and that is especially true with a bad actor like Nippon Steel.”
McCall’s skepticism reflects a broader concern that symbolic gestures could be used to placate critics while offering no real protections to steelworkers or local economies.
Nippon’s Troubled Trade Past Reemerges
One of the union’s major grievances lies in Nippon Steel’s chequered history with U.S. trade law.“This is a company that has again and again violated our trade laws,” McCall said, “devastating steel communities in Pennsylvania and elsewhere.”The USW has previously filed petitions alleging unfair dumping of steel products from Japan and South Korea, cases which led to tariffs and anti-dumping duties. The union fears that without rigorous oversight, similar practices could resurface under the guise of corporate synergy.
Political Leaders Face Mounting Pressure
As 2024 presidential election dynamics heat up, politicians on both sides of the aisle are taking positions on the deal. Former President Donald Trump has endorsed the idea of a stronger nationalist stance on industry, hinting support for U.S. Steel retaining domestic control.Conversely, labor leaders demand concrete legislation.“This is a moment for the government to show whether it stands with working people or with multinational corporations,” said Representative Brendan Boyle (D-PA), a vocal supporter of union concerns.
Calls are also growing for congressional hearings and stricter Committee on Foreign Investment in the United States reviews before any agreement is finalized.
Worker Anxiety Ripples Through Rust Belt
On the ground, thousands of steelworkers are bracing for impact. Many fear plant closures, outsourcing, or job reductions in the name of streamlining operations.“We’ve seen this story before,” said Mike Randolph, a blast furnace operator in Pittsburgh. “A foreign company comes in with promises, and five years later we’re standing in unemployment lines.”The USW has already begun organizing town halls and strategy sessions with locals across Pennsylvania, Ohio, and Michigan.
Cross-Border Business Reactions Diverge
While unions have been outspoken in opposition, business groups appear more ambivalent.Candace Laing, President and CEO of the Canadian Chamber of Commerce, noted, “Unwinding efficient, competitive, and reliable supply chains in steel and aluminum comes at a great cost to both countries.”Laing warned that similar tariffs imposed in 2018 led to a net job loss even in the U.S. manufacturing sector. “Doubling the steel and aluminum tariffs to 50% is antithetical to North American economic security,” she added.
Canada, a key trading partner in the steel sector, views itself as collateral damage if the deal triggers retaliatory tariffs or protectionist policies.
Historical Parallels & Strategic Risks
U.S. Steel, founded in 1901 by J.P. Morgan and Andrew Carnegie, is an iconic symbol of American industrial might. A transfer of control, even partial, to a foreign entity is bound to provoke ideological and geopolitical debates.
“Foreign ownership of U.S. Steel is not just an economic decision, it’s a cultural flashpoint,” said Daniel Simmons, a senior policy analyst at the Peterson Institute for International Economics.
A Plea for Transparent Negotiations
In closing his statement, McCall reiterated the USW’s call for full transparency, enforceable agreements, and labor protections.“We need the truth, not talking points. We demand a seat at the table and the legal right to protect our members,” he said.Until then, the steelworkers union says it will hold both corporate and government leaders accountable for any decisions that affect its 850,000 members across North America.
Key Takeaways
United Steelworkers was excluded from talks on a Nippon Steel–U.S. Steel partnership and raised concerns over the lack of binding commitments.
President David McCall accused Nippon Steel of repeated trade law violations that harmed U.S. steel towns like those in Pennsylvania.
Union leaders reject the “golden share” concept as vague, urging enforceable labor protections and government accountability.
